If you’re going through, or have been through, divorce, you’re probably not that surprised to learn that divorce is one of the top factors that lead people to file bankruptcy. Suddenly a two income household is divided into two. Income remains the same, but living expenses are doubled and each spouse is left trying to make ends meet. Often people going through divorce will turn to credit cards to help them cover their expenses. Before they know it, they’ve racked up thousands of dollars in debt trying to maintain the lifestyle they lived when they were married. Or maybe only of them had medical insurance, leaving the other uninsured when their divorce becomes final. Now the uninsured spouse has to use those credit cards for medical care, or worse, use the emergency room to get care, leaving them with piles of medical bills.
Whatever the reason, the bottom line is that divorce can leave you not only emotionally but financially drained. Chapter 7 or Chapter 13 bankruptcy will wipeout common consumer debts like credit cards, car loans, and medical bills and help you recover from your divorce.
If you and your spouse are contemplating divorce and haven’t yet filed, it might be a good idea to talk to a bankruptcy attorney before you file. Filing bankruptcy before divorce can help resolve complications related to the division of debt in your separation agreement. If you’ve already filed a divorce petition, it might be best to wait until your divorce case has been closed before you file bankruptcy. That way any division of property has taken place and listing your assets in your bankruptcy petition will be simpler. If you’re going through a divorce, you should know that filing bankruptcy won’t stop the divorce proceedings.
If you are going through or have been divorced and are struggling with your debt, bankruptcy may be a good option for you to get a fresh financial start. We hope you’ll come in for a free, no-obligation with an experienced bankruptcy attorney. You can make an appointment with our online scheduling system or call 303.331.3403 to set a time that’s convenient for you.